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Dream Spain Buyer's Guide - THE Guide to Buying YOUR Spanish Property
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New build or resale? |
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This is a common question, and worth thinking about before
you begin your property search. What you eventually choose
will depend on current availability, the reason you are buying
and where you are buying. Both types of property have
advantages and disadvantages.
NEW BUILD - Advantages
- A deposit of 3,000 Euros (approximately £2000) fixes
the price that will be paid for the property - no matter
how far in advance the completion date has been set.
- Covered by a statutory 10-year builder's guarantee.
- Being new, no immediate maintenance, upgrading, or repair
work is required.
- Payment by instalments allows time to sell UK property
or otherwise raise capital. Though it is always advisable
to have your finances in order before purchasing.
- Modifications to suit personal tastes and requirements
may be incorporated.
- Many new properties have low-maintenance finishes.
- Properties bought "off plan" often increase in
price several times before completion, so they are an excellent
investment. It is also usual for the price to increase once
the show house is complete and again when the development
is completed.
NEW BUILD - Disadvantages
- Waiting time - the property may not be available now. Dependant
on status of property when purchased, this may be several
months though opportunities do occur for purchase at a later
stage or even after completion - usually called “key
ready” properties.
- Unless the property is part of a single phase or the final
phase some building work may continue in the vicinity.
- There could be delays with the building (this is alleviated
by using a reputable agent who knows the area, will only
recommend reputable builders and are not influenced by the
offer of high commissions)
RESALE - Advantages
- Usually available immediately or within a matter of weeks.
- Any faults may reasonably be expected to have been rectified
under the original guarantee.
- You have more of a chance of seeing what you are getting,
its position, neighbours etc.
- Roads and amenities will be in place.
RESALE - Disadvantages
- Often up to 10% more when compared to an equivalent new
property.
- There may be encumbrances, debts, mortgages, on the property. However
if you have reliable legal representation you can check this
prior to purchase.
- Some wear and tear is to be expected.
- If more than 10 years old builder's guarantee will no longer
apply, or it may have been built before guarantees were applied
to Spanish property.
- Short timescale. A deposit of at least 10% must usually
be paid immediately (compared with a flat 3000 euros on new
properties). The total balance to be paid on handover of
the property, which can take as little as 4 to 6 weeks. It
is therefore ESSENTIAL that your finances are in order before
coming to Spain to purchase resale.
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